All Forum Posts by: Chris B.

 I knew most of the numbers were irrelevant, but most of the examples I have been reading refer to new purchases so I wanted to make sure I was throwing in anything that might help clarify the scenario. Thanks.

 Local requirements. "The landlord is required to provide and pay for curbside collection service. The minimum required service is 20 gallons of garbage per unit collected every other week. Recycling and composting service is also required." 

It is seen as a health and safety issue. Rumor is in years past people were saying they could not afford the garbage service and were letting refuse pile up at properties.

 One thought is to tap into some of the equity to fix up the property we are moving into. And then in a couple of years (if all has been going well) rent both the houses and buy a third as our primary. After that, reevaluate again in a few years and maybe purchase more properties specific to being a rental. Slow timeline but one approach. Thanks for the feedback.

I need to post to the New Members introduction forum but thought I would dive in here and ask for some help.

My wife and I became accidental landlords in 2008 and honestly have kind of been on cruise control without doing much numbers crunching. With a growing family we have decided to move out of our primary residence and into the rental as it is bigger and within a better school boundary. Now I am trying to crunch the numbers on the primary home and see if we should sell or rent. Below are some details:

Home purchased in 2004 for $180,000. Currently owe $120,000 at 4%. PI payment is approx. $615/month. Taxes/Insurance work out to approx. $288/month. Using our current rental as a guide I have estimated (conservative in my belief) $450/month in expenses (garbage, minor maintenance, and ~$5,000 in surprises). Leaves me with $122/month if I rent for $1475. 

Home is a restored craftsman bungalow with hardwood floors, basement for laundry and storage, detached garage and yard. Other 2/1 SFR rentals in the area are going for $1375 - 1595. The home is pretty much 100% updated with new elec., plumbing, furnace, bath, kitchen all within the last several years so that is why I think $5,000 in maintenance is an over estimate. We will also be living only 2-miles away and I fixed up the house myself so think I can handle (and will be OK with handling) most repairs or maintenance. Yard is pretty dialed in and feel clean-up a couple times a year being all that will be needed.

Rental market is Portland, OR and we are in a very family oriented neighborhood (not necessarily the most trendy close-in). I know things can change but I am not worried about vacancy in the current market.

My real estate agent estimates a conservative listing price of $290,000 if we were to list (he is drooling over this property so has been very actively courting us). I think a hair over $300k would be closer to reality in the end.

What are some gut reactions to the numbers? Right now my gut is saying rent for 2- 2.5 years and then reevaluate as I could always sell before year three and not get hit with capital gains.

Thoughts? Advice? What am I missing in my evaluation?

Thanks so much.

Chris